[Kristin]

Is the bank responsible for the accuracy and therefore required to review the seller’s CD that is prepared by the closing attorney, or are we only responsible for the accuracy of the borrower’s closing disclosure? The regulation indicates that the settlement agent is responsible for it, however 1026.19(f)(v) is clear that the creditor is responsible for the settlement agent’s work. Does 1026.19(f)(v) only apply to the work done on the borrower’s side and not apply to the seller CD?

[rcooper]

Kristin,
I assume you are talking about this excerpt from 1026.19(f)(1)(v)-3:
3. Creditor responsibilities. If a settlement agent provides disclosures required under § 1026.19(f) in the creditor’s place, the creditor remains responsible under § 1026.19(f) for ensuring that the requirements of § 1026.19(f) have been satisfied.

This is confusing, but the key phrase to consider here is “in the creditor’s place”. 1026.19(f)(4) is it clear that the settlement agent is responsible for providing the closing disclosure to the seller; therefore, it would not be deemed to be providing it in the creditor’s place since the settlement agent is the one that is responsible for its accuracy and delivery to begin with.

[Author]

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